''Saving Behavior under the Influence of Income Risk: An Experimental Study
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( 2010, Vol. 30 No.2 )

Individual subjects are experimentally tested for precautionary saving. We use a simplified experimental framework and decision supporting tool to show that subject's consumption is consistent with precautionary saving. We find that subjects overact in changing current income. However, those over-reactions cancel each other, and subject's consumption behavior is close to the optimal solutions on average.